Shell's shale gas projects cleared by local authorities (Ukraine)

The Donetsk and Kharkiv regional administrations of Ukraine have voted in favour of the production sharing agreement (PSA) with Shell.

Shell aims to invest at least US$10bn in the development of the Yuzivske shale gas field. During the initial phase of the project, investments into the Donetsk and Kharkiv region social infrastructure will amount to US$140m. Ukraine's shale gas reserves are estimated to 1.2 tcf (34 bcm); if exploration proves successful in the Yuzivska area, production could reach 8 to 10 bcm/year in 10 years. Shell had been selected to explore shale gas in Yuzivske in May 2012.